Perks of the job are back on offer after credit crunch cuts

STAFF perks have risen above the £8 billion mark for the first time this decade, according to accountancy group UHY Hacker Young.

The value of taxable benefits employees received as part of their remuneration packages has increased by more than 5 per cent to £8 billion in 2015/16 from £7.6 billion in the year earlier.

The increase was double that of average wages, which rose just 2.2 per cent in the same period. Staff perks including company cars, free accommodation and private health insurance often have a lower tax rate than they would if they were paid to staff as salary.

The accountancy firm said the 10 per cent rise in employees receiving private medical and dental insurance in the five years to 2016 was one of the biggest areas of growth.

Company cars are the highest-value perk, with their worth increasing 18 per cent over the last five years to £4.3billion, despite the number claiming this benefit rising only one per cent.

Andrew Snowdon, partner at UHY Hacker Young, said: ‘After a lull in the use of job perks during the credit crunch and its aftermath, businesses are now getting back to using taxable benefits as a way of recruiting and retaining top talent.

‘The increase in the number of people receiving private medical and health care coincides with a period where people are living longer and realising that they need to take care of themselves and their families. It is something that many employees would consider using if it was not in their remuneration package and is therefore a very popular perk.’